PetroChina profit plunges 78pc on weak oil price

New Straits Times - - Business -

to 6.5 per cent this year and 6.2 per cent next year.

That au­gurs poorly for Chi­nese banks, which have been strug­gling to con­tain loan de­faults and nar­rower mar­gins amid the coun­try’s eco­nomic slow­down in re­cent years. Tighter reg­u­la­tions on mort­gage lend­ing, off-bal­ance sheet wealth man­age­ment prod­ucts and some cross-bor­der fi­nan­cial ser­vices have also SHANG­HAI: State-owned Chi­nese en­ergy gi­ant PetroChina yes­ter­day an­nounced it slumped to a record-low profit for last year as global oil price weak­ness slashed earn­ings by 78 per cent.

Net profit fell to 7.86 bil­lion yuan (RM5 bil­lion), the Bei­jing­based com­pany said in a state­ment to the Hong Kong stock ex­change, where it lists shares.

Bloomberg News re­ported the profit figure was a record-low for PetroChina, the coun­try’s big­gest oil pro­ducer.

Cit­ing a “com­pli­cated and se­vere do­mes­tic and in­ter­na­tional eco­nomic en­vi­ron­ment”, PetroChina blamed the re­sult on de­pressed prices of crude oil and nat­u­ral gas and a “se­vere” over­sup­ply of re­fined prod­ucts due to slower de­mand as China’s eco­nomic growth mod­er­ates.

PetroChina said it was cau­tiously op­ti­mistic this year, if the global econ­omy could re­cover.

“...The in­ter­na­tional oil price is likely to re­bound, but may still in­volve rel­a­tively great un­cer­tainty,” it said in a state­ment said.

Tian Miao, an an­a­lyst at North Square Blue Oak Ltd, told Bloomberg News profit was “badly hit by the oil price crash last year”. AFP dragged on prof­its.

Con­struc­tion Bank cut op­er­at­ing costs by 12 per cent from a year ear­lier and saw its NPL ra­tio fall to 1.52 per cent, from 1.58 per cent, ac­cord­ing to a Hong Kong ex­change fil­ing on Wed­nes­day. Agri­cul­tural Bank slashed costs by 13 per cent and its bad-loan ra­tio dropped to 2.37 per cent from 2.39 per cent, it said on Tues­day. Bloomberg

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Agri­cul­tural Bank slashed costs by 13pc and its bad­loan ra­tio dropped to 2.37 per cent last year from 2.39 per cent be­fore.

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